State Street enjoys Q1 2014 securities finance increase
28 April 2014 Boston
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State Street earned $85 million in revenue from securities finance in Q1 2014, an 11.8 percent increase on the last quarter in 2013, thanks to new custody mandates.
The increase, primarily due to higher spreads and volumes, was also 9 percent higher than Q1 2013, primarily due to new business in enhanced custody.
New asset servicing mandates during Q1 2014 totalled $189 billion and net new assets to be managed were $4 billion.
Meanwhile, servicing fees of $1.24 billion in Q1 2014 increased 0.5 percent from the last quarter of 2013, primarily due to stronger global equity markets and net new business, although they were partially offset by lower transaction-related revenue
Compared to Q1 2013, servicing fees increased 5.4 percent, due to stronger global equity markets and net new business.
Joseph Hooley, chairman, president and CEO at State Street, said: "Delivering value to our clients and shareholders is our core mission. We remain focused on our key prioritiese—increasing revenue, controlling expenses, investing in growth opportunities, and optimising our capital structure to create long-term value.”
“We are responding to the challenges presented by low interest rates and conservative investor risk appetite by realigning our staffing to support our goal of positive operating leverage for the full year."
He added: "Client demand for our products, services, and solutions remains strong. New asset servicing wins totaled $189 billion for the quarter, which included 25 new mandates in alternative investment servicing where we hold a leadership position and see additional opportunities for growth."
State Street bagged new custody mandates from Etera Mutual Pension Insurance Company and insurance company Ageas UK this year, with Afore SURA, one of the largest pension funds in Mexico, among the new clients signing up to the bank in 2013.
The bank also recruited Lou Maiuri from BNY Mellon, to take over as head of securities finance.
Nicholas Bonn, State Street’s interim securities finance chief, stepped down, but continues to lead its transition management and portfolio solutions businesses.
The increase, primarily due to higher spreads and volumes, was also 9 percent higher than Q1 2013, primarily due to new business in enhanced custody.
New asset servicing mandates during Q1 2014 totalled $189 billion and net new assets to be managed were $4 billion.
Meanwhile, servicing fees of $1.24 billion in Q1 2014 increased 0.5 percent from the last quarter of 2013, primarily due to stronger global equity markets and net new business, although they were partially offset by lower transaction-related revenue
Compared to Q1 2013, servicing fees increased 5.4 percent, due to stronger global equity markets and net new business.
Joseph Hooley, chairman, president and CEO at State Street, said: "Delivering value to our clients and shareholders is our core mission. We remain focused on our key prioritiese—increasing revenue, controlling expenses, investing in growth opportunities, and optimising our capital structure to create long-term value.”
“We are responding to the challenges presented by low interest rates and conservative investor risk appetite by realigning our staffing to support our goal of positive operating leverage for the full year."
He added: "Client demand for our products, services, and solutions remains strong. New asset servicing wins totaled $189 billion for the quarter, which included 25 new mandates in alternative investment servicing where we hold a leadership position and see additional opportunities for growth."
State Street bagged new custody mandates from Etera Mutual Pension Insurance Company and insurance company Ageas UK this year, with Afore SURA, one of the largest pension funds in Mexico, among the new clients signing up to the bank in 2013.
The bank also recruited Lou Maiuri from BNY Mellon, to take over as head of securities finance.
Nicholas Bonn, State Street’s interim securities finance chief, stepped down, but continues to lead its transition management and portfolio solutions businesses.
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